In March, the market witnessed a serious banking crisis, with the failure of Silicon Valley Bank and Signature Bank, and the liquidation of Silvergate Bank, due to its severe financial difficulties. In Europe, the government negotiated the forced takeover of Credit Suisse by UBS. Even so, the US equity markets and European stock markets closed the month on a positive note.
The cryptocurrency market was also rocked by volatility, but Bitcoin (BTC) gained close to 23% in March. Looking ahead, the outlook looks rosy for Bitcoin bulls in April and data from Coinglass suggests the month has been largely in favor of buyers.
Although the altcoins reacted positively to the rise of Bitcoin, the rally has not been the same in all of them. This suggests that market participants have been selective in their purchases. As a result, traders could focus on the drivers rather than the laggards.
Let’s study the charts of five cryptocurrencies that look positive in the short term. If they break above their resistance levels, they can offer short-term trading opportunities.
Bitcoin Price Analysis
Bitcoin is facing stiff resistance at the $29,000 level, but the bulls have not allowed the price to lose ground. This suggests that the bulls are being patient as they anticipate a move higher.
The 20-day exponential moving average ($27,012) shows an uptrend and the RSI is above 61, indicating that the buyers are in control. Bullish momentum is likely to pick up after buyers clear the $29,200 hurdle. This could result in a rally to $30,000 and then $32,500.
Conversely, if the price falls sharply from the current level, it will suggest that short-term traders are selling. The BTC/USDT pair can drop as far as the 20-day EMA, which is an important level to watch out for.
If this support gives way, the pair could slide to the breakout level of $25,250. This is a decisive level for the pair, as if it gives way, the selling could intensify and the decline could extend to the 200-day simple moving average ($20,424).
The buyers pushed the price above the resistance at $28.868 but were unable to hold the higher levels. This suggests that the bears are trying to hold the price below $28.868. If the bears sustain trading below the 20 EMA, the pair could start to fall towards $27,500 and then $26,500.
To the upside, a break and close above $28.868 will indicate that the bulls have dominated the bears. This could mark the start of the next bullish leg. The target of the breakout above the $26,500 to $28,868 range is $31,236.
Ether Price Analysis
Ether (ETH) turned down from the overhead resistance of $1,857 on April 1, but the bulls are not giving up much ground. This suggests that the buyers are not rushing out.
The bullish 20-day EMA ($1,748) and the RSI in the positive zone suggest that the path of least resistance is to the upside. If the bulls push the price above $1,857, the ETH/USDT pair could make a feint of reaching the psychologically important $2,000 level.
The bears are likely to mount a strong defense at this level, but if the bulls break through this barrier, the next stop could be $2,200. This positive view will be invalidated in the short term if the price breaks below the 20-day EMA and the horizontal support of $1,680.
On the 4-hour chart, the pair has pulled back from the overhead resistance of $1,857 and the bears have dragged the price below the 20-EMA. This suggests that short-term bulls may be closing their positions. The pair could drop as low as $1,743 and then as low as $1,680.
Conversely, if the price turns higher and breaks above the 20 EMA again, it will suggest that the breakout may have been a bear trap. A strong bounce from the current level could improve the prospects for a rally above overhead resistance.
Polygon Price Analysis
Polygon (MATIC) has been trading near the 20-day EMA ($1.11) for the past few days. Typically, a tight consolidation near overhead resistance resolves to the upside.
If the buyers push the price above the 20-day EMA, the MATIC/USDT pair will attempt a rally to $1.25 and $1.30 thereafter. The shorts are expected to watch this area vigorously, as if they fail, the pair could soar as far as $1.57.
On the other hand, if the price turns down from the current level and breaks below $1.05, it will suggest that the bears are back in control. Then the pair could drop to the 200-day SMA ($0.97), which is an important level to watch. If this support breaks, the pair could drop towards $0.69.
The bears try to hold the pair below the 20 EMA. If successful, the pair could drift as high as $1.05, and then as high as $1.02. This is an important zone for bulls to defend, as if it gives way, the pair could continue its move lower to $0.94.
On the other hand, if the price rises from the current level, it will suggest that all the minor dips are being bought. This will increase the probability that the pair breaks above the minor resistance at $1.15. Then the pair could go as high as $1.25.
Hedera Price Analysis
Buyers thwarted several attempts by the bears to sink and hold Hedera (HBAR) below the 200-day SMA ($0.06) between March 9-28.
The 20-day EMA ($0.06) has started to turn higher and the RSI is in the positive territory, indicating that the buyers have the upper hand. The HBAR/USDT pair is likely to continue its march north to the $0.10-$0.11 resistance zone. The sellers are likely to defend this area with all their might, but if the buyers break through, the pair could start a new uptrend.
Contrary to this assumption, if the price turns down and breaks below the 20 day EMA, it will suggest that the bears are selling relief rallies. Then the pair could retest the crucial support of the 200-day SMA. A break below this level would open the doors for a possible drop to $0.04.
The bulls initiated a strong rally from the support near $0.06, but the relief rally is facing stiff resistance in the zone between the $0.07 50% Fibonacci retracement level and the 61.8% retracement level. of USD 0.08.
To the downside, the bulls try to defend the support at the 20 EMA. If the price bounces, the pair could rally as high as $0.09, and then as high as $0.10. If the pair rally, it could reach $0.09 and then $0.10. Conversely, if the pair breaks below the 20 EMA, the bears will still be in the market. Then the pair could turn down to the support near $0.06.
EOS Price Analysis
EOS (EOS) is attempting to complete a bullish cup and handle formation. The buyers pushed the price above the 20-day EMA ($1.15) on March 29, starting a comeback.
The 20 day EMA has started to turn gradually higher, and the RSI is in the positive territory, indicating a bit of an advantage for the bulls. The EOS/USDT pair is likely to rally to the upper resistance zone between $1.26 and $1.34.
The sellers are likely to defend this zone aggressively, but if the bulls outweigh the bears, the pair could start a new uptrend. The pattern target of the reversal setup is $1.74.
Conversely, if the price turns lower from the upper zone, it indicates that the bears are selling rallies. The pair could fall towards the 20-day EMA and subsequently towards the 200-day SMA ($1.05). A break below this level will suggest that the bears are back in charge.
The 4-hour chart shows that the bears are protecting the $1.22 level vigorously, but one small bright spot is that the bulls have not allowed the price to dip below the 20 EMA. This shows strong demand at higher levels. low. This shows strong demand at lower levels.
The uptrending 20 EMA and the RSI in positive territory indicate that the bulls have a slight advantage. If the buyers push the price above $1.22, the pair could rally as high as $1.26, and then as high as $1.34.
Conversely, if the pair falls below the 20 EMA, short-term traders could be taking profits. The pair could drop to $1.14 and later to $1.06.
Points of view and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com.
Every investment and trade move involves risk, you should do your own research when making a decision.